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Brown Chocolate

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Submitted By ernilesh80
Words 764
Pages 4
Problem-
Even after the installation of Ball-mill, the capacity expansion problem will not be completely resolved because ball-mill will only increase capacity by 75%. Due to rapidly rising demand, Harris has to increase the capacity quickly to avoid to be labeled as uncooperative, unresponsiveness and the eventual loss of businesses and customers.
Assumptions-
1) For bottleneck calculation, tempering and molding is not considered because 65% of the liquid chocolate ( Conche's output) can be directly transported to third-party co-packers.
2) Remove the assumptions of 48-72 hours conche time and take another assumption that we have just took conche's time as 50 hours.
Recommendations-
1) It is given in the case that a mass-market retailer had expressed interest in Scharffen Berger's chocolate which could further increase the demand by 30% by the end of the year (2005 ). Harris hoped that the ball mill will be installed by June 2005 and they can fulfill the demand of this mass market retailer. They have to also purchase second melangeur and second roaster ( if overtime is not possible in roaster) and make it ensure to install it before the end of the year to fulfill the demand of this mass-market retailer along with rising demand from other retailers. It is also given in the case that 15-20% annual growth is projected in premium segment between 2000 to 2010. So from 2006, Harris has to closely watch the market demand and should accordingly increase the capacity in step-by-step manner instead of full-fledge expansion so that inventory cost and fixed cost of production can be minimized.
2) Previously, approximately 65% of molded product was sent to third-party co-packers who again re-melt, re-temper and re-mold the cholocate. This causes the duplication of tempering and molding process. To avoid the tempering and molding to become bottleneck, it is a good idea to

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